PNC Financial Hits New 52-Week High - Analyst Blog


Shares of The PNC Financial Services Group, Inc. ( PNC ) set a new 52-week high, touching $70.40 in the second half of the trading session on May 14. The closing price of this major regional bank represents a solid year-to-date return of 19.4%. The trading volume for the session was 3.05 million shares, higher than the average 2.98 million shares over the last 3 months.

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left given its strong estimate revisions over the last 30 days and expected year-over-year earnings growth of 6.5% for 2013.

Growth Drivers

Impressive first-quarter 2013 results -- including an earnings surprise of 12.1%, year-over-year growth of 6% in revenues and a 2% decline in non-interest expenses - as well as a strong capital position were the primary growth drivers for PNC Financial.

On Apr 17, PNC Financial reported its first-quarter earnings per share of $1.76, significantly exceeding the Zacks Consensus Estimate of $1.57. Moreover, results beat the earnings per share of $1.44 recorded in the prior-year quarter.

Better-than-expected results reflected improved top line. Moreover, lower nonperforming assets and reduced non-interest expenses were the positives. PNC Financial remains on track to reduce full-year 2013 non-interest expense from 2012 levels and realize $700 million in expense savings in 2013.

Moreover, the company has now delivered positive earnings surprises for 4 straight quarters with an average beat of 13.3%.

Estimate Revisions Show Potency

Over the last 30 days, 17 of the 21 estimates for 2013 have been revised upward for PNC Financial, lifting the Zacks Consensus Estimate by 2.0% to $6.68 per share. For 2014, 9 of the 20 estimates moved north, helping the Zacks Consensus Estimate advance 0.7% to $6.89 per share.

Some well performing banks include JPMorgan Chase & Co. ( JPM ), Fifth Third Bancorp ( FITB ) and State Street Corporation ( STT ), all of which carry a Zacks Rank #2 (Buy).

FIFTH THIRD BK (FITB): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

PNC FINL SVC CP (PNC): Free Stock Analysis Report

STATE ST CORP (STT): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: FITB , JPM , PNC , STT

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